Kensington and Chelsea Council's pension fund investments are under scrutiny due to holdings in companies linked to Israel's alleged violations of international law and illegal settlement activity in the West Bank.
During a Full Council meeting on Wednesday, 21 October 2026, public speakers Dominic Miqueta and May Elgindi urged the council to divest from such companies and adopt Pillar 3 of the London CIV's responsible investment framework. They highlighted the Trades Union Congress's recent motion supporting divestment from companies complicit in Israel's actions.
Miqueta argued that pension funds may take non-financial factors into account if it carries no significant risk of financial detriment and if members share the concern. He cited the example of Russian assets, which became unsellable following sanctions.
Elgindi pointed to the UK government's new sanctions regime targeting companies facilitating illegal settlement activity. This regime aims to sanction companies and individuals that support, facilitate, or profit from illegal settlement activity in the West Bank, including Israeli banks identified by the United Nations as involved in settlement-related activities. However, the specific details of this regime and how it applies to pension fund investments were not elaborated upon during the meeting.
Councillor Emma Will, Deputy Leader and Lead Member for Finance and Property, stated that any proposal to exclude companies must be assessed against legal frameworks, financial implications, and UK government policy. She noted that Any proposal to exclude particular companies or sectors must be assessed against the applicable LPGS legal framework, including the financial implications, the funds investment objectives and relevant UK government policy.
The meeting information did not provide specific details on these financial implications or risks.
Councillor Sina Lari, speaking as a lay member and Labour Party spokesperson, expressed strong support for Pillar 3, drawing a parallel with the council's divestment from companies associated with the Grenfell Tower tragedy. He urged the council to align with the government's condemnation of Israeli settler terrorism and sanctions on individuals and companies implicated in war crimes.
Pillar 3 of the London CIV's responsible investment framework excludes companies on the UN database of businesses active in illegal settlements.
Councillor Will mentioned that the committee will review its investment strategy statement and responsible investment policy in light of the statutory guidance. And this will include, as I've said already, consideration of the funds responsible investment preferences and how these can be communicated to the London CIV.
The Investment Committee was due to consider a revised investment strategy statement and responsible investment policy on 27 October 2026. Councillor Will stated, As I mentioned, next week on the 27th of October, the committee will review its investment strategy statement and responsible investment policy in light of the statutory guidance.
Any proposed exclusions must be consistent with the fund's statutory and fiduciary responsibilities, financial objectives, and applicable UK government policy.
